Batts scheme termination killed business

Former environment minister Peter Garrett's word that the home insulation program would last caused the financial ruin of a Queensland company, an inquiry has heard.

Greg Rashleigh has told a royal commission his company, All Seasons Insulation, ramped up business after he attended a meeting in March 2009 where Mr Garrett said the scheme would run for two years or until the money ran out.

Mr Rashleigh built a $2 million manufacturing mill.

Eleven months later, the Rudd government scheme, introduced during the global financial crisis, was prematurely terminated after the deaths of four installers.

Mr Rashleigh was forced to close his Toowoomba-based business of 34 years in May 2010, leaving him with the unused mill and $3.36 million worth of stock, the inquiry was told.

He later received 15 per cent commonwealth compensation for the insulation stock.

"Mr Garrett was the minister at the time and he was the one who was going to tell us if we could ramp up or not," Mr Rashleigh said.